2011 Report to the Community

Independent auditors’ report on the summary financial statements

To the Board of Directors of London Health Sciences Centre
The accompanying summary financial statements, which comprise the summary statement of financial position as at March 31, 2011, the summary statements of operations, changes in net assets and cash flows for the year then ended, are derived from the audited financial statements of London Health Sciences Centre for the year ended March 31, 2011. We expressed an unmodified audit opinion on those financial statements in our auditors’ report dated May 25, 2011.

The summary financial statements do not contain all the disclosures required by Canadian generally accepted accounting principles applied in the preparation of the audited financial statements of London Health Sciences Centre. Reading the summary financial statements, therefore, is not a substitute for reading the audited financial statements of London Health Sciences Centre.

Management’s responsibility for the summary financial statements
Management is responsible for the preparation of a summary of the audited financial statements on the basis described in the Basis of presentation note.

Auditors’ responsibility
Our responsibility is to express an opinion on the summary financial statements based on our procedures, which were conducted in accordance with Canadian Auditing Standard (CAS) 810, “Engagements to Report on Summary Financial Statements.”

Opinion
In our opinion, the summary financial statements derived from the audited financial statements of London Health Sciences Centre for the year ended March 31, 2011 are consistent, in all material respects, with those financial statements, on the basis described in the Basis of presentation note.

Chartered Accountants
Licensed Public Accountants
London, Canada
May 25, 2011

Message from the Chair of the Finance and Audit Committee

I am pleased to report on the financial results of London Health Sciences Centre (LHSC) for the fiscal year ended March 31, 2011. Over the past five years, our hospital has focused on rebuilding its financial sustainability. At the same time, we have remained committed to meeting or exceeding the service performance criteria outlined in our Hospital Services Accountability Agreement with the SouthWest Local Health Integration Network (SW LHIN).

LHSC ended the year with an operating margin of approximately 4.8% and a healthy working capital position. This has been accomplished in an environment defined by increasing operating cost pressures and patient service level demands coupled with a shrinking supply of professional health care providers. The hospital’s performance in the face of these challenges reflects the efforts of all of our staff to find more innovative approaches to serving our patients.

Although the Ministry of Health and Long-Term Care has announced a global funding increase for Ontario hospitals of 1.5% for the fiscal 2012 year, the hospital’s specific funding level will not be known for some time. However, our current strong financial position will allow us to invest further in continuing efforts to improve patient access, reduce hospital acquired infection rates and enhance overall patient safety.

LHSC’s board of directors welcomes the introduction of the Broader Public Sector Accountability Act (BPSAA). We have an obligation as stewards of public funds, to ensure that all of our procurement and signing authority policies adhere to the BPSAA effective April 1, 2011. We welcome the changes the BPSAA will bring, including new rules and higher accountability standards for our organization.

I wish to thank the volunteer members of the Finance & Audit Committee for their extraordinary commitment during the past year. I also want to thank the staff, physicians and management who collectively make LHSC the proud institution that it is.

Gerry Wheaton
Chair, Finance and Audit Committee
Board of Directors, London Health Sciences Centre